Scenario 14-3 Suppose a Certain Competitive Firm Is Producing Q=500 Units of Units

question 324

Multiple Choice

Scenario 14-3
Suppose a certain competitive firm is producing Q=500 units of output. The marginal cost of the 500th unit is $17, and the average total cost of producing 500 units is $12. The firm sells its output for $20.
-Refer to Scenario 14-3. At Q=499, the firm's profits equal

• A)$3,980.
• B)$3,992.
• C)$3,997.
• D)$4,017.

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Definitions:

Frequencies

The rate at which a vibration occurs that constitutes a wave, either in material (as in sound waves) or in an electromagnetic field (as in radio waves and light).

Averages

Statistical measures that summarize or give an indication of the central tendency or typical value of a set of numbers.

Statistical Generalization

The process of inferring general trends or conclusions about a population based on sample data.

Small Sample

A subset of data or observations derived from a larger population, which may be insufficient for reliable statistical inferences.